Lotteries

We’re promoting the $33 million Powerball lottery jackpot in key non lottery traffic areas of the shop this week. The size of the prize and that Powerball usually produces fewer to share division 1 has heightened customer interest. So, we’ve created in-store materials of our own to punch the excitement for us and our customers. Here’s what we have done at the front of the shop:

Above our top selling magazines:

At our front-of-shop magazine display:

At our newspaper stand:

And, at our main non lottery sales counter:

We spent $50 on the balloons and $10.00 on colour copies of the posters Tattersalls provided us. This investment will generate an exceptional return, especially from infrequent gamblers – those who only jump in when the prize jackpots like this. The theatre created by the materials will also drive non-lottery sales.

Based on what I see happening at Tesco in the UK, it is easy to see why our Coles and Woolworths would like lottery products at their checkouts. Check out this pitch from Tesco, they make it sound like you’re doing the community a favor buying lottery product with them. Their Fast Pay pitch certainly addresses the long line issue. Unless lottery agents get engaged in thins issue, supermarkets will get lottery products and we will be the losers.

The Powerball jackpot last night to $33 million is fantastic. Many newsagencies will see a 10% to 20% increase in traffic and lottery sales. Smart newsagents will have up-sell opportunities at their sales counter. We are using the opportunity to drive magazine sales and stationery with some very specific offerings. Our Magazine Club Card is a key offering. We’re also dressing the store to create some excitement. Hey, it’s $33 million so the dream is very exciting!

The jackpot has come at an excellent time. School is back, work is back and Easter is a way off.

The Lottery Agents Association of Victoria said the State Government was unlikely to approve Intralot’s opportunistic application.

Association CEO Peter Judkins CEO said Mr Fletcher’s petition meant well but even if the unlikely approval was made, changes would not come before mid next year.

This is from a story in the Geelong Advertiser on February 13. Judkins has no idea if the government is likely to approve the bid by Intralot to sell scratch tickets in supermarkets. He is wrong to take pressure off the government as he has through this story. Further on the article…

But the CEO said the association would join Mr Fletcher’s fight, should the approval begin to grow legs.

I’ve not heard from Judkins so I am not sure how he plans to support the petition.

The time for Victorian lottery agents is to act now. We ought to be on the steps of parliament mocking the big fat and rich Coles and Safeway organisations and the risk to communities, responsible gambling and family owned small businesses if they will scratch tickets. Unfortunately, Judkins and his association would have us sit on our hands. I’d rather be a dill and find that Intralot loses than be Judkins and find that Intralot has won because by then it would be too late.

Here’s the Geelong Advertiser article:

On this same topic of lotteries in Victoria and Itralot, Kenneth Davidson of The Age has written an interesting opinion piece which looks at the Upper House Inquiry into the regulation of gambling in Victoria.

How can it be that the state owned NSW Lotteries can offer lottery retailers free promotional product while Tattersalls in Victoria offers nothing?

In NSW on Feb. 23 and 24 if you buy a 30 game Megapick in draw 2671 you get eight standard Autopick games of Monday and Wednesday free. The seller gets commission on the paid for and free product.

This is a good deal for the consumer and for the lottery agent.

There are similar deals for Powerball, 6 from 38 Pools and instants.

Wanted: Division 1 Winner. Apply Within.

I have seen a sign with this text in at least ten newsagent windows in the last week. It’s usually printed in black on colour paper and laminated. No sales pitch, no connection with the dream other than some lame text.

This is very poor marketing and I doubt it generates any interest. I suspect the newsagents are all being trained or motivated by the same person or organisation.

Lottery products need to be marketed with flair and in a way which connects with aspirations. We use in house syndicate posters, self made t-shirts, mock-ups of oversize cheques from past winnings and bright balloon arch displays to have fun and draw attention to the lottery offering. Others are brilliant at newsletters to customers in their area. Others do great themed window displays. These are all low cost high energy marketing ideas – far better than a boring old window sign from the 1960s.

Following good advice from VANA I have modified the lottery petition to more accurately reflect the value proposition from newsagents and other small business outlets. The modified counter top petition can be download here. For the online petition please click here.

Please, let people know about this petition and get them supporting newsagents and small business.

Please help Victorian newsagents lobby the State Government as they consider whether to grant the Greek company Intralot rights to sell scratch tickets. Intralot has been reported as saying they plan to sell scratch tickets through supermarkets. The petition is setup at the respected Go Petition here.

We have been running a petition in our shop for several days and it was with encouragement from our customers that we created this online petition.

Our customers are telling us they prefer the personal service on a newsagency. One told me that they come to us with a mind to purchase lottery products whereas he does not want to face that temptation when buying groceries.

My view is that supermarkets are already bloated with range and profits. Their employees operate like automatons. Lottery products require attention not only for accuracy but also for compliance.

Signatures on our petition to call on the Government to not allow the sale of scratch lottery tickets in supermarkets are growing. Without any pitch or fanfare customers read the sheet and sign up. More are commenting across the counter with extra comments about Coles and Safeway. If more newsagents put this or a similar petition out I am sure we could have thousands of signatures in a few days and surely the government would have to take notice.

I don’t want instant scratch tickets told in supermarkets because this would reduce sales in my newsagency and that would have a knock on effect through the business. I am sure most newsagents in Victoria would agree with me.

Unfortunately, the industry association does not seem engaged with this issue.

Our petition has been out for less that a day and customers are registering their opposition to any move by the State Government which would see scratch ticket lottery products available in supermarkets such as Coles and Safeway / Woolworths. They are also writing comments which make it clear they think that the two major supermarket companies have too much power.

We’re not promoting the petition – it’s on a clipboard on the counter without any other material – making this early response most encouraging.

Here is the petition people are putting their name to:

We, the undersigned, are concerned citizens who urge the State Government of Victoria to ensure that lottery ticket and scratchie games are sold only in independent small businesses in Victoria to protect jobs.

The Bracks Labor Government and Intralot would do well to consult Victorians before they seal a deal to put scratch ticket lottery products in supermarkets.

Name and address details have been covered for privacy reasons.

I have created a petition for Victorian newsagents wanting to collect expressions of support from their customers for submission to the Bracks Labor Government while it considers whether to award a lottery licence to the Greek Intralot company. Waiting until a decision is announced by the government is too late. Newsagents concerned that Coles and Safeway / Woolworths may get scratch ticket product need to act now.

Following my post yesterday about Intralot chasing a licence to sell scratch tickets lottery games in Victoria, I received an anonymous call from a silent number claiming the decision was made by the Victorian Government and that Coles and Safeway will have scratch tickets available at their checkout by Christmas.

While I don’t know if the rumor is true, research online confirms Intralot’s plans for placing scratch ticket products in supermarkets in Victoria.

Coles and Safeway are too big already. They do not need scratch tickets. Their products will tempt people to use change to chase luck. Some of this change will be money from the Government Baby bonus and social welfare payments. By keeing lottery products away from supermarkets at least separates essential purchases from non essentials such as lotteries.

It would be socially irresponsible for the Steve Bracks Labour Government in Victoria to break a system which is socially responsible and has been generous to them for so many years.

While Tattersalls may have issues, at least their profits stay here. Intralot is a Greek company. We should not be shipping profits offshore when a local company serves us well.

Here’s an example of how we leverage lottery traffic into better business. To the left is a pen offer and to the right is a magazine offer. To compensate at our key newspaper traffic point we often promote a lottery offer.

Yes, we are breaking supplier rules by doing this. It’s my business and I need to maximise the return. The sales figures speak for themselves – the lottery company is happy.

I’ve been contacted by people reading my postings here about lotteries commenting on the difference in equipment between the states. Here’s a photo of the full terminal – without giving away any Tattersalls secrets.

We setup a 10 share @ $10 a share Keno syndicate yesterday since the spot 10 prize was over $1 million. We considered it a risk since we had to sell all shares in the day. We sold our in 90 minutes. One employee sold nine shares – way to go Shaun. It is a lesson up selling from our newest employee. It also highlights the challenge of keeping long term employees fresh and focused on the need to offer over the counter as well as process the sales brought to the counter.

I’ve had some great feedback here and offline about my post yesterday about integrating the sales counter. This photo shows part of the story at our counter – the placement of a point of sale register between two Tattersalls terminals. It means we can sell anything from the Tatts points. This helps us include products at the Tatts counters and be able to sell them from there. We’ve had success with magazines, pens and some gift items at seasons.

The register, along with the other two point of sale registers at the counter, allow us to track all Tattersalls sales and thereby measure the efficiency of Tattersalls product to the business overall. We can tell how many times people buy Tattersalls product and nothing else as well as what they do buy when they buy other items.

While everyone is focused on the $33 million lottery jackpot this Saturday, lottery retailers ought to focus on the following week. Tuesday’s OzLotto has reached $15 million and Thursday’s Powerball has reached $12 million. These jackpots will ensure that people collecting prizes from the $33 million will reinvest – without them, we’d pay out and lost the sale opportunity. Opportunistic? Yes. It’s business and these lottery games are provide low cost nighttime dreams.